Romanian MEP, Adriana Ticau, talks about sources of funding for energy efficiency in buildings within World GBC Europe Network event in BrusslesOctober 13, 2011 at 8:49 pm | Posted in Legislative Outreach | Leave a comment
Tags: Brussels, buildings, energy_efficiency, european funding, funding, WGBC
On the 21st of September, in Brussels, 15 Green Building Councils from different European countries celebrated World Green Building Weektogether with officials from the European Parliament and the European Commission [see a full report on the meeting’s outcome]. Among the key speakers, Romanian MEP Adriana Ticau addressed the audience highlighting the importance that recently adopted legislation such as EPBD 2 and the new measures included in the Roadmap for a Resource Efficient Europe have on strengthening the construction standards. Ms Ticau also talked about funding sources to ensure the high standards included in the legislation are met. As one of the well known supporters for higher level funding for energy efficiency in buildings she reminded the attendees about the opportunity for national governments to use up to 4% from the European Regional Development Fund (ERDF) for energy efficient housing projects. Without spending that in 2007-2013 budgeting period it will be very difficult to negotiate higher shares from 2013 onwards.
According to the Regulation 397/2009 (that modifies the initial Regulation 1080/2006) the Member States can allocate up to 4% from the ERDF on projects for energy efficiency and use of renewable energy in existing housing. In the Regulation 1828/2006 (art 47.2) there are specified also the types of interventions that can be funded:
- renovation of the common parts of multi-family residential buildings
- delivery of modern social housing of good quality through renovation and change of use of existing buildings owned by public authorities or non-profit organizations
The 4% specific allocation for energy efficiency and RES in buildings should be added to the initial 2% allocation for housing that was available even before ; those combined could make possible an allocation for rehabilitation of low-income housing of 6% from the 9431 Mio EUR that were allocated to Romania from ERDF for the 2007-2013 period.
In Romania ERDF is one of the Structural Funds that is funding the priorities from the Regional Operational Program (ROP) and part of the Economic Competitiveness Sectoral Operational Program. The Axis 1 from ROP vaguely makes a reference to the possibility for local public authorities to obtain funding for social housing projects, but only if these are previously included in the Integrated Urban Development Plans. Social housing is not specified clearly in the indicative list of potential activities but it is included as a performance indicator for the overall assesment of the ROP. So, with a bit of imagination, public authorities could fund this type of projects. Unfortunately, from analyzing the list of projects that were financed so far under Axis 1 from ROP, not even one is related to energy efficiency in residential buildings or to delivering social housing.
In the Economic Competitiveness Program the situation is even more blurry because, even if there is a funding line for Improving the energy efficiency by the end-users (Measure 4.3), project that would fund energy efficiency in the housing sector are not specificaly included.
Ministry of Regional Development and Ministry of Economy could re-negotiate the priorities and budget allocation in both programs (ROP and Economic Competitiveness) with the European Commission and include a very clear allocation for projects aiming at improving energy efficiency in social housing. Also – because there is no European wide definition of what “social housing” mean, the European Commission left it upon each Member State to define it according to their national set criteria. There are signs that some discussion around the topic already started between the Ministry of Development and European Commission, but we need to move quick to be able to also implement some projects.
Tags: funding, Green Building, renewable energy, strategy, Sustainable Development
The RoGBC member Oxford Sustainable Group, the leading renewable/sustainable developer, announced the launch of The Oxford Renewable Energy Fund 9 (OREF 9) , a closed-ended fund to be listed on the Channel Island Stock Exchange (CISX) seeking to raise €200 million. OREF 9 aims to add value, achieve capital growth and spread risk though investment in and development of a range of renewable energy projects primarily in Finland, Romania and Estonia.
The fund has a duration of five years and aims to deliver a low-risk 20% per annum return to investors after all costs and fees (net). The return requires zero bank financing, meaning high returns with low risk in the current financial market turmoil. The final development value of the projects generated could reach €2 billion.
The fund is targeting institutional and high net worth investors. The market in Central and Eastern Europe has performed well in the past compared to Western Europe and is expected to again perform strongly in the medium term. European and Global demand for energy is high and forecast to rapidly increase. Within Europe there is a strong government commitment to fixed targets and high subsidies to generate a minimum percentage of energy using renewable sources – some countries need to double their renewable capacity by 2020.
The Oxford Sustainable Group will select and manage OREF 9 projects through a process of careful and detailed analysis, due diligence and active management; this means that investments are selected based on the considerable value that the Oxford team can be add to them, taking account of project specifics, local area effects, general planning, political possibilities and market situation/trends. This is the same investment philosophy which Oxford’s previous eight investment opportunities have followed. To date, Oxford’s independently audited projects have delivered over 50% per annum on average.
Hadley Barrett, CEO, Oxford Sustainable Group said: “We have an impressive track record and years of experience leading our peers in this area. We are therefore delighted to launch OREF 9. In the current climate, the new fund represents a unique opportunity for sophisticated investors to generate strong returns. Our investment model is focused on adding value and does not count on passive asset appreciation. Added to our sustainable approach, we therefore outperform our peers, while preserving capital, even in a falling market, and creating value for our investors. The demand for renewable energy today vastly outstrips supply and the demand is only going to increase, so we are confident that investors are perfectly positioned to make excellent, risk-adjusted returns while contributing to social and economic future stability. I am sufficiently sure about this fund to kick it off with 20m Euro of my own money.“
The Oxford Sustainable Group goes further than other ethical/SRI methodologies in the market by using a proprietary 360 degree sustainable approach. This sustainable approach takes into consideration the effects of Oxford projects on all stakeholders. Instead of focusing only on an “ethical” formula derived from narrow investment criteria, Oxford is concerned with how a project satisfies the needs of our investors, the environment, society, local residents and the broader economy.
The Oxford Sustainable Group was recently awarded CarbonNeutral status – the only CarbonNeutral renewable energy developer in the CEE region.
Protected: UNDP Workshop: The economy behind environmental challenges: Solutions for diversifying the financing sources for protected areas in the CarpathiansJuly 31, 2009 at 6:06 pm | Posted in General | Enter your password to view comments.
Tags: biodiversity, conservation, eco-tourism, funding, UNDP
New version of “Casa Verde” to be launched soon – the draft of the financing guide is available for commentsApril 16, 2009 at 5:01 pm | Posted in Legislative Outreach | Leave a comment
Tags: casa verde, funding, Legislation, Legislative Outreach
Today, the draft of the financing guide for the new version of “Casa Verde” program was published by the Environment Fund Administration. RoGBC is planning to evaluate the new guide and send our comments. We are encouraging all the members – especially the ones that are active in the area of technical consultancy and the providers of renewable energy solutions for thermal energy – to take a look on the guide and send us their comments and suggestions on the drafted guide by Monday, 27th of April.
Main points from the new program:
- The main beneficiaries of the financing are the local and central public authorities ; the owners association are also eligible for the funding
- The types of projects to be financed are replacing or introducing new heating systems from public buildings (buildings that belong to public authorities, hospitals, schools, social and/or cultural centers) or blocks of flats
- The total budget for 2009 is 310.000.000 RON and it will be split between two annual financing sessions
- The maximum level of financing is 70% out of total eligible costs
- Main cost categories eligible for financing are – the equipments for the heating system, the assembly costs, consultancy costs for the feasibility studies , VAT
- The financing session will be officially open soon
The draft of the financing guide is available here .
For more information and comments please send me an e-mail at firstname.lastname@example.org .
Tags: funding, Legislation, RES
There are two modalities of financing:
1. Direct financing (apply for funds directly to the Environment Fund Administration)
- it is open for: companies, territorial units (local public authorities), and educational institutions
- level of financing: companies – 40% for the companies in Bucharest-Ilfov region, 50% for the rest; projects should not have a larger value than 250.000 RON; territorial units, educational institutions – 60% level of financing, projects should not have a larger value than 300.000 RON
- total budget available for direct financing – 120 Million RON
- First financing session for 2009 – 1-28 November 2008
2. Indirect financing ( applied through authorized installers)
- available for individuals
- level of financing – 90%; projects should not have a larger value than 25.000 RON
- the request for financing by the individual should be handed out to one authorized installer; the installer should validate the request and only based on this validation the beneficiary (physical person) will have access to financing
Becoming an authorized installer:
- the session for submitting all the required documents to the Environment Fund Administration – 1-28 November 2008
- key eligibility criteria – art. 19 from the guide; requiring status of having CAEN Code 432 and the necessity of offering 3 years of guarantee for the products delivered and installed
- all the requests of authorization are evaluated by an “Evaluation Committee” from the Environment Fund Administration
- the amount of financing allocated for each installer will be decided by the “Evaluation Committee” based on the amount requested by each installer and the total budget allocated (400 Million RON for 2009)
The guide for financing is available here.
If you have any questions, please contact me directly at email@example.com.